Court denies mortgage freeze due to war: Borrower must pay 1.2 million.

According to inkorr.com: In the Poltava region, the court dismissed the claim of a man who asked to suspend the payment of a mortgage loan during martial law. The borrower's debt to 'PrivatBank' amounts to over 1.27 million UAH, and he wanted the court to recognize the war as a force majeure and relieve him of penalties. This was reported by Informator.

The essence of the dispute with the bank

According to case materials, the man signed a loan agreement with 'PrivatBank' on October 1, 2021, for an amount of 1.41 million UAH until 2041. However, by May 2025, he had a debt of 1,271,156 UAH, which consisted of:

• 1,155,187 UAH — principal;

• 115,969 UAH — interest.

The borrower claimed that due to the war, he was unable to repay the debt on time. In court, he demanded:

• suspend obligations during martial law;

• cancel penalties and fines;

• review the amount of monthly payments and the market value of the apartment.

The man referred to the law 'On the legal regime of martial law' and Article 623 of the Civil Code of Ukraine, which recognizes war as a case of force majeure. He also noted that he had contacted the bank regarding restructuring, but received only refusals.

Court ruling

The Lubny district court supported the bank's position. The judges acknowledged that 'PrivatBank' fulfilled its obligations, while the borrower failed to make his payments.

“Force majeure circumstances do not exempt from the performance of obligations, if it is not proven that they directly prevented the performance of the contract in this case,” the court ruling states.

The court also noted that the borrower had been paying his debt until September 2024, so the war did not cause a complete inability to pay. Restructuring is the bank's right, not its obligation, the ruling emphasized.

As a result, the court ordered the man to pay 1,271,156 UAH in debt under the mortgage agreement in favor of 'PrivatBank'.

This case has become another vivid example of the difficulties faced by borrowers in wartime. Although the law recognizes certain benefits during force majeure, the court noted that the emergence of such circumstances does not always exempt one from obligations under contracts. Importantly, in such situations, borrowers still have the opportunity to negotiate agreements with banks for restructuring, which can help avoid further financial difficulties.